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FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
Despite Sri Lanka’s high-level political commitment to work with
the FATF and APG to address its strategic AML/CFT deficiencies,
Sri Lanka has not made sufficient progress in implementing its
action plan, and certain strategic AML/CFT deficiencies remain.
Sri Lanka should work on addressing these deficiencies, including
by: (1) adequately criminalising terrorist financing (Special
Recommendation II); and (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets
(Special Recommendation III). The FATF encourages Sri Lanka to
address its remaining deficiencies and continue the process of
implementing its action plan, including by continuing to work on its
AML/CFT legislation.
____________________________________________________
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists – Further Information:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Sri Lanka is neither a regional financial center nor a preferred
center for money laundering. However, a large informal economy
and significant number of cash-based transactions make Sri
Lanka vulnerable to money laundering, and the government’s lack
of a transparent tender mechanism for government projects
invites corruption. Terrorists in Sri Lanka have exploited non-
governmental and charitable organizations, and have used
community building projects to conceal the proceeds of crime.
Sri Lanka is not an offshore center and has no free trade zones.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, registered finance companies, insurance
companies, securities industry, casinos, real estate agents,
dealers in precious metals and stones, lawyers, trusts and
company service providers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS
(STRs):
Covered entities: Licensed commercial banks, licensed
specialized banks, registered finance companies, stock
brokerages, and insurance companies
Number of STRs received and time frame: 111 in 2009
Number of CTRs received and time frame: 1.6 million in 2009
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With the U.S.: NO
With other governments/jurisdictions: YES
Sri Lanka is a member of Asia/Pacific Group on Money
Laundering (APG), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.apgml.org/documents/docs/17/Sri%20Lanka%
20MER%20-%20Final%2010August06.pdf .
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In February 2010, the Government of Sri Lanka provided a high-
level written commitment and developed an action plan to address
strategic deficiencies in its AML/CFT regime. As part of its
AML/CFT efforts, Sri Lanka should strengthen the criminalization
of money laundering and terrorist financing, and establish and
implement procedures to identify and freeze terrorist assets. Sri
Lanka should also enact disclosure protections, and criminalize
tipping off in AML/CFT cases.
Efforts are underway to amend the AML/CFT laws to address
technical and substantive deficiencies in the legal framework and
strengthen the authority of the FIU and law enforcement
authorities engaged in AML/CFT detection and suppression. The
new legislative package will include a draft law to strengthen
forfeiture provisions relating to the proceeds of crime or funds
related to the financing of terror. Sri Lanka should focus on
passing these laws, which has not been a governmental priority.
Although AML/CFT laws cover non-financial entities such as
casinos, real estate agents, dealers in precious metals and
stones, lawyers, and trusts or company service providers, no
regulator has issued KYC or currency transaction reporting (CTR)
policies covering these institutions. Sri Lanka should draft and
implement KYC and CTR policies to cover these entities.
____________________________________________________
US State Dept Narcotics Report 2012:
Sri Lanka plays only a minor role in the international narcotics
traffic as a transshipment route for heroin transiting from India
and Pakistan. Government of Sri Lanka (GSL) officials work to
raise awareness of and vigilance against drugs and illicit drug
smuggling. The lead agency for counternarcotics efforts is the
Police Narcotics Bureau (PNB). The GSL does not, as a matter of
policy, encourage or facilitate the illicit production or distribution of
any controlled substances or the laundering of proceeds from
illegal drug transactions.
Sri Lanka is a party to the 1988 UN Drug Convention. There is a
bilateral extradition treaty between the United States and Sri
Lanka, but no bilateral mutual legal assistance treaty.
The primary drugs available and abused in Sri Lanka are
Southwest Asian (SWA) and Indian produced ‘brown sugar’
heroin, and cannabis in the form of marijuana and hashish. Brown
sugar heroin is widely available throughout the country,
particularly in the capital Colombo. The GSL considers heroin a
growing threat and remains committed to targeting drug
traffickers. The majority of locally consumed heroin originates
from India. The remaining percentage is either produced in
Pakistan/Afghanistan or of unknown origin.
Maritime drug smuggling from India is the greatest threat to Sri
Lanka. According to police officials, drugs are transported across
the Palk Strait from India and then overland to the south. Police
officials report that the Bandaranaike International Airport is the
second major entry point for drugs. According to the PNB,
Pakistani drug couriers have changed their patterns of travel to
avoid detection because direct flights from Pakistan are screened
more thoroughly than other flights. Many Pakistani couriers are
traveling to Dubai then onward to Sri Lanka in an attempt to avoid
detection.
Cannabis is cultivated locally, primarily in smaller operations in the
former conflict areas of the North and East. All indications are that
locally grown cannabis is strictly for domestic consumption and
there are no indications that it is being exported. The police
regularly work to locate and eradicate cannabis crops. Police note
that the “party drugs” found in Colombo social venues are
believed to be imported from Thailand.
Efforts began in late 2010 to increase the size, reach and
responsibility of the PNB as well as to foster better cooperation
between the PNB and other GSL institutions including the
Customs Service, the Department of Excise and the Navy. From
January to October 2011, the GSL made 11,787 arrests for using,
dealing or trafficking heroin, 7 for Hashish, 4 for Cocaine and
22,691 for Cannabis. Though arrests increased from last year,
seizures of heroin decreased significantly. This drop has been
attributed by senior officials within the PNB to better cooperation
and information sharing between the agencies involved in the
counter-narcotics effort thus reducing trafficking. The GSL seized
23kg of heroin (down from 137 kg in 2010), 18 kg of hashish
(down from 23kg), 10 kg of cocaine and 50,000 kg of cannabis
(up from 20,270 kg) thus far in 2011. The cocaine seizure was the
single largest seizure of cocaine in Sri Lanka’s history.
The National Dangerous Drugs Control Board (NDDCB) runs a
total of 5 treatment and rehabilitation centers island wide capable
of treating approximately 1000 patients a year. The most recently
opened center, inaugurated on October 3, 2011 is the only one in
the country specifically for women. Women comprise just 1
percent of heroin addicts.
The GSL welcomes U.S.-sponsored training for criminal
investigative techniques and management practices. Sri Lanka
also works with regional and international partners on narcotics
issues, particularly the Colombo Plan, a regional organization with
special expertise in drug prevention and treatment. The SAARC-
the South Asian Association for Regional Cooperation Drug
Offense Monitoring Desk (SDOMD), located within the PNB,
serves as a clearing house for SAARC countries to input, share,
and review regional narcotics statistics. GSL officials maintain
steady contact with counterparts in India and Pakistan, origin
countries for the majority of drugs in Sri Lanka.
The U.S. government will continue to aid the Sri Lankan police in
its transition to community-focused policing techniques. The U.S.
government provided no narcotics specific training to Sri Lanka in
2011. The U.S. also expects to continue its support of regional
and country-specific training programs, particularly through the
Colombo Plan. The U.S. Drug Enforcement Administration attaché
based in New Delhi visits Colombo regularly and has plans to
provide the PNB and other agencies with training opportunities in
2012.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Sri Lanka is primarily a source and, to a much lesser extent, a
destination for men, women, and children subjected to forced
labor and sex trafficking. Sri Lankan men, women, and some
children (between 16 and 17 years old) migrate consensually to
Kuwait, Jordan, Saudi Arabia, Qatar, Lebanon, the United Arab
Emirates (UAE), Oman, Bahrain, and Singapore to work as
construction workers, domestic servants, or garment factory
workers. Some of these workers, however, subsequently find
themselves in conditions of forced labor through practices such
as restrictions on movement, withholding of passports, threats,
physical or sexual abuse, and threats of detention and
deportation for immigration violations. Many of these migrants pay
high recruitment fees – usually about $1,500 – imposed by
unscrupulous licensed labor recruitment agencies and their
unlicensed sub-agents and assume debt in order to satisfy these
costs. This indebtedness contributes to debt bondage in
destination countries. A recent Human Rights Watch report noted
that over one-third of Sri Lankan domestic workers in Jordan are
physically abused by their employers, 11 percent were sexually
assaulted, 60 percent were not paid wages, over 60 percent had
their passports confiscated, and 80 percent experienced forced
confinement – these are abuses that indicate forced labor. In the
past year, there were high-profile reports of Sri Lankan domestic
workers who were subjected to forced labor and physical abuse in
Saudi Arabia, Kuwait, and Jordan, including having more than 20
nails hammered in their bodies, or being forced to swallow nine
nails. There were also reports of cases in which some Sri Lankan
recruitment agencies committed fraud by engaging in contract-
switching: promising one type of job and conditions but then
changing the job, employer, conditions or salary after arrival,
which are documented risk factors for forced labor and debt
bondage. Sri Lanka is reported to be a transit country for men,
some of whom may be trafficking victims, traveling from Pakistan
and Bangladesh to Dubai, UAE. In several cases, men were
stranded in Sri Lanka by the employment agent. Some Sri Lankan
women were promised jobs as domestic workers in other
countries, but after arriving were instead forced to work in
brothels, mainly in Singapore. A small number of Sri Lankan
women are forced into prostitution in the Maldives.
Within the country, women and children are subjected to sex
trafficking in brothels, especially in the Anuradhapura area, which
was a major transit point for members of the Sri Lankan Armed
Forces heading north. Boys are more likely than girls to be forced
into prostitution – this is generally in coastal areas for domestic
child sex tourism. In 2009, the National Child Protection Authority
(NCPA) estimated that approximately 1,000 children were
subjected to commercial sexual exploitation within Sri Lanka
although some NGOs believed the actual number was between
10,000 and 15,000. NGOs expressed concern that the recent
increase in tourism in the very poor post-conflict areas on the
east coast may increase demand for child sex tourism. There are
reports of children being subjected to bonded labor and forced
labor in dry-zone farming areas on plantations, and in the
fireworks and fish-drying industries. Some child domestic workers
in Colombo, generally from the Tamil tea-estate sector of the
country, are subjected to physical, sexual, and mental abuse,
nonpayment of wages, and restrictions of their movement. Some
women and children were promised garment industry work by
agents and were instead forced into prostitution. A small number
of women from Thailand, China, and countries in South Asia,
Europe, and the former Soviet Union may be subjected to forced
prostitution in Sri Lanka.
Sri Lanka does not fully comply with the minimum standards for
the elimination of trafficking; however, it is making significant
efforts to do so. The government convicted three traffickers, in
the first case under its anti-trafficking legislation, and rejuvenated
its inter-agency
task force. However, serious problems remain unaddressed, such
as the detention of identified trafficking victims (including those
who provided evidence to support the three convictions), the
failure to achieve criminal convictions for fraudulent recruitment
agencies involved in trafficking in persons, and official complicity
in human trafficking.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: In 2009, the Government of Sri Lanka announced
formally the defeat of the Liberation Tigers of Tamil Eelam
(LTTE), a U.S.-designated Foreign Terrorist Organization. While
there were no terrorist incidents within Sri Lanka in 2010, there
were continuing concerns that the LTTE's international network of
financial support might still be functioning; therefore, most
counterterrorism activities undertaken by the Sri Lankan
government were targeted at countering terrorist finance.
Legislation and Law Enforcement: Legislative efforts were focused
on limiting financial support for the remnants of LTTE.
Domestically, there was a large budgetary allocation (about four
percent of Sri Lanka’s GDP) for defense and monitoring of Tamil
diaspora activity in coordination with foreign governments. The
United States provided training for relevant Sri Lankan
government agencies and the banking sector in combating the
provision of financial support to the LTTE remnants. The Sri
Lankan government implemented the Container Security Initiative
and the Megaports program at the Port of Colombo.
Countering Terrorist Finance: In February, Sri Lanka provided a
high-level written commitment to work with the Financial Action
Task Force (FATF) to implement the following corrective
measures: (1) adequately criminalizing money laundering and
terrorist financing; and (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets. The
government was drafting amendments to the 2005-2006 laws on
money laundering and terrorist financing, in accordance with
FATF recommendations, at year’s end.
Regional and International Cooperation: In October, the Financial
Intelligence Unit (FIU) of Sri Lanka signed a Memorandum of
Understanding (MOU) with the FIU of Bangladesh to share
financial information to facilitate the investigation and prosecution
of persons suspected of money laundering and terrorist financing.
Sri Lanka has already signed MOUs with the Philippines, Nepal,
Cambodia, Malaysia, Afghanistan, South Korea, and Indonesia.
Countering Radicalization and Violent Extremism: In order to
address lingering resentment in areas that were formerly held by
LTTE combatants, the Sri Lankan government was working to
restore civil administration, resettle Internally Displaced Persons,
provide immediate infrastructure development, encourage private
sector participation, and promote the development of industries.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Date: 16 February 2012
Despite Sri Lanka’s high-level political commitment to work with
the FATF and APG to address its strategic AML/CFT deficiencies,
Sri Lanka has not made sufficient progress in implementing its
action plan, and certain strategic AML/CFT deficiencies remain.
Sri Lanka should work on addressing these deficiencies, including
by: (1) adequately criminalising terrorist financing (Special
Recommendation II); and (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets
(Special Recommendation III). The FATF encourages Sri Lanka to
address its remaining deficiencies and continue the process of
implementing its action plan, including by continuing to work on its
AML/CFT legislation.
____________________________________________________
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists – Further Information:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Sri Lanka is neither a regional financial center nor a preferred
center for money laundering. However, a large informal economy
and significant number of cash-based transactions make Sri
Lanka vulnerable to money laundering, and the government’s lack
of a transparent tender mechanism for government projects
invites corruption. Terrorists in Sri Lanka have exploited non-
governmental and charitable organizations, and have used
community building projects to conceal the proceeds of crime.
Sri Lanka is not an offshore center and has no free trade zones.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: NO
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, registered finance companies, insurance
companies, securities industry, casinos, real estate agents,
dealers in precious metals and stones, lawyers, trusts and
company service providers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS
(STRs):
Covered entities: Licensed commercial banks, licensed
specialized banks, registered finance companies, stock
brokerages, and insurance companies
Number of STRs received and time frame: 111 in 2009
Number of CTRs received and time frame: 1.6 million in 2009
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With the U.S.: NO
With other governments/jurisdictions: YES
Sri Lanka is a member of Asia/Pacific Group on Money
Laundering (APG), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.apgml.org/documents/docs/17/Sri%20Lanka%
20MER%20-%20Final%2010August06.pdf .
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In February 2010, the Government of Sri Lanka provided a high-
level written commitment and developed an action plan to address
strategic deficiencies in its AML/CFT regime. As part of its
AML/CFT efforts, Sri Lanka should strengthen the criminalization
of money laundering and terrorist financing, and establish and
implement procedures to identify and freeze terrorist assets. Sri
Lanka should also enact disclosure protections, and criminalize
tipping off in AML/CFT cases.
Efforts are underway to amend the AML/CFT laws to address
technical and substantive deficiencies in the legal framework and
strengthen the authority of the FIU and law enforcement
authorities engaged in AML/CFT detection and suppression. The
new legislative package will include a draft law to strengthen
forfeiture provisions relating to the proceeds of crime or funds
related to the financing of terror. Sri Lanka should focus on
passing these laws, which has not been a governmental priority.
Although AML/CFT laws cover non-financial entities such as
casinos, real estate agents, dealers in precious metals and
stones, lawyers, and trusts or company service providers, no
regulator has issued KYC or currency transaction reporting (CTR)
policies covering these institutions. Sri Lanka should draft and
implement KYC and CTR policies to cover these entities.
____________________________________________________
US State Dept Narcotics Report 2012:
Sri Lanka plays only a minor role in the international narcotics
traffic as a transshipment route for heroin transiting from India
and Pakistan. Government of Sri Lanka (GSL) officials work to
raise awareness of and vigilance against drugs and illicit drug
smuggling. The lead agency for counternarcotics efforts is the
Police Narcotics Bureau (PNB). The GSL does not, as a matter of
policy, encourage or facilitate the illicit production or distribution of
any controlled substances or the laundering of proceeds from
illegal drug transactions.
Sri Lanka is a party to the 1988 UN Drug Convention. There is a
bilateral extradition treaty between the United States and Sri
Lanka, but no bilateral mutual legal assistance treaty.
The primary drugs available and abused in Sri Lanka are
Southwest Asian (SWA) and Indian produced ‘brown sugar’
heroin, and cannabis in the form of marijuana and hashish. Brown
sugar heroin is widely available throughout the country,
particularly in the capital Colombo. The GSL considers heroin a
growing threat and remains committed to targeting drug
traffickers. The majority of locally consumed heroin originates
from India. The remaining percentage is either produced in
Pakistan/Afghanistan or of unknown origin.
Maritime drug smuggling from India is the greatest threat to Sri
Lanka. According to police officials, drugs are transported across
the Palk Strait from India and then overland to the south. Police
officials report that the Bandaranaike International Airport is the
second major entry point for drugs. According to the PNB,
Pakistani drug couriers have changed their patterns of travel to
avoid detection because direct flights from Pakistan are screened
more thoroughly than other flights. Many Pakistani couriers are
traveling to Dubai then onward to Sri Lanka in an attempt to avoid
detection.
Cannabis is cultivated locally, primarily in smaller operations in the
former conflict areas of the North and East. All indications are that
locally grown cannabis is strictly for domestic consumption and
there are no indications that it is being exported. The police
regularly work to locate and eradicate cannabis crops. Police note
that the “party drugs” found in Colombo social venues are
believed to be imported from Thailand.
Efforts began in late 2010 to increase the size, reach and
responsibility of the PNB as well as to foster better cooperation
between the PNB and other GSL institutions including the
Customs Service, the Department of Excise and the Navy. From
January to October 2011, the GSL made 11,787 arrests for using,
dealing or trafficking heroin, 7 for Hashish, 4 for Cocaine and
22,691 for Cannabis. Though arrests increased from last year,
seizures of heroin decreased significantly. This drop has been
attributed by senior officials within the PNB to better cooperation
and information sharing between the agencies involved in the
counter-narcotics effort thus reducing trafficking. The GSL seized
23kg of heroin (down from 137 kg in 2010), 18 kg of hashish
(down from 23kg), 10 kg of cocaine and 50,000 kg of cannabis
(up from 20,270 kg) thus far in 2011. The cocaine seizure was the
single largest seizure of cocaine in Sri Lanka’s history.
The National Dangerous Drugs Control Board (NDDCB) runs a
total of 5 treatment and rehabilitation centers island wide capable
of treating approximately 1000 patients a year. The most recently
opened center, inaugurated on October 3, 2011 is the only one in
the country specifically for women. Women comprise just 1
percent of heroin addicts.
The GSL welcomes U.S.-sponsored training for criminal
investigative techniques and management practices. Sri Lanka
also works with regional and international partners on narcotics
issues, particularly the Colombo Plan, a regional organization with
special expertise in drug prevention and treatment. The SAARC-
the South Asian Association for Regional Cooperation Drug
Offense Monitoring Desk (SDOMD), located within the PNB,
serves as a clearing house for SAARC countries to input, share,
and review regional narcotics statistics. GSL officials maintain
steady contact with counterparts in India and Pakistan, origin
countries for the majority of drugs in Sri Lanka.
The U.S. government will continue to aid the Sri Lankan police in
its transition to community-focused policing techniques. The U.S.
government provided no narcotics specific training to Sri Lanka in
2011. The U.S. also expects to continue its support of regional
and country-specific training programs, particularly through the
Colombo Plan. The U.S. Drug Enforcement Administration attaché
based in New Delhi visits Colombo regularly and has plans to
provide the PNB and other agencies with training opportunities in
2012.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Sri Lanka is primarily a source and, to a much lesser extent, a
destination for men, women, and children subjected to forced
labor and sex trafficking. Sri Lankan men, women, and some
children (between 16 and 17 years old) migrate consensually to
Kuwait, Jordan, Saudi Arabia, Qatar, Lebanon, the United Arab
Emirates (UAE), Oman, Bahrain, and Singapore to work as
construction workers, domestic servants, or garment factory
workers. Some of these workers, however, subsequently find
themselves in conditions of forced labor through practices such
as restrictions on movement, withholding of passports, threats,
physical or sexual abuse, and threats of detention and
deportation for immigration violations. Many of these migrants pay
high recruitment fees – usually about $1,500 – imposed by
unscrupulous licensed labor recruitment agencies and their
unlicensed sub-agents and assume debt in order to satisfy these
costs. This indebtedness contributes to debt bondage in
destination countries. A recent Human Rights Watch report noted
that over one-third of Sri Lankan domestic workers in Jordan are
physically abused by their employers, 11 percent were sexually
assaulted, 60 percent were not paid wages, over 60 percent had
their passports confiscated, and 80 percent experienced forced
confinement – these are abuses that indicate forced labor. In the
past year, there were high-profile reports of Sri Lankan domestic
workers who were subjected to forced labor and physical abuse in
Saudi Arabia, Kuwait, and Jordan, including having more than 20
nails hammered in their bodies, or being forced to swallow nine
nails. There were also reports of cases in which some Sri Lankan
recruitment agencies committed fraud by engaging in contract-
switching: promising one type of job and conditions but then
changing the job, employer, conditions or salary after arrival,
which are documented risk factors for forced labor and debt
bondage. Sri Lanka is reported to be a transit country for men,
some of whom may be trafficking victims, traveling from Pakistan
and Bangladesh to Dubai, UAE. In several cases, men were
stranded in Sri Lanka by the employment agent. Some Sri Lankan
women were promised jobs as domestic workers in other
countries, but after arriving were instead forced to work in
brothels, mainly in Singapore. A small number of Sri Lankan
women are forced into prostitution in the Maldives.
Within the country, women and children are subjected to sex
trafficking in brothels, especially in the Anuradhapura area, which
was a major transit point for members of the Sri Lankan Armed
Forces heading north. Boys are more likely than girls to be forced
into prostitution – this is generally in coastal areas for domestic
child sex tourism. In 2009, the National Child Protection Authority
(NCPA) estimated that approximately 1,000 children were
subjected to commercial sexual exploitation within Sri Lanka
although some NGOs believed the actual number was between
10,000 and 15,000. NGOs expressed concern that the recent
increase in tourism in the very poor post-conflict areas on the
east coast may increase demand for child sex tourism. There are
reports of children being subjected to bonded labor and forced
labor in dry-zone farming areas on plantations, and in the
fireworks and fish-drying industries. Some child domestic workers
in Colombo, generally from the Tamil tea-estate sector of the
country, are subjected to physical, sexual, and mental abuse,
nonpayment of wages, and restrictions of their movement. Some
women and children were promised garment industry work by
agents and were instead forced into prostitution. A small number
of women from Thailand, China, and countries in South Asia,
Europe, and the former Soviet Union may be subjected to forced
prostitution in Sri Lanka.
Sri Lanka does not fully comply with the minimum standards for
the elimination of trafficking; however, it is making significant
efforts to do so. The government convicted three traffickers, in
the first case under its anti-trafficking legislation, and rejuvenated
its inter-agency
task force. However, serious problems remain unaddressed, such
as the detention of identified trafficking victims (including those
who provided evidence to support the three convictions), the
failure to achieve criminal convictions for fraudulent recruitment
agencies involved in trafficking in persons, and official complicity
in human trafficking.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: In 2009, the Government of Sri Lanka announced
formally the defeat of the Liberation Tigers of Tamil Eelam
(LTTE), a U.S.-designated Foreign Terrorist Organization. While
there were no terrorist incidents within Sri Lanka in 2010, there
were continuing concerns that the LTTE's international network of
financial support might still be functioning; therefore, most
counterterrorism activities undertaken by the Sri Lankan
government were targeted at countering terrorist finance.
Legislation and Law Enforcement: Legislative efforts were focused
on limiting financial support for the remnants of LTTE.
Domestically, there was a large budgetary allocation (about four
percent of Sri Lanka’s GDP) for defense and monitoring of Tamil
diaspora activity in coordination with foreign governments. The
United States provided training for relevant Sri Lankan
government agencies and the banking sector in combating the
provision of financial support to the LTTE remnants. The Sri
Lankan government implemented the Container Security Initiative
and the Megaports program at the Port of Colombo.
Countering Terrorist Finance: In February, Sri Lanka provided a
high-level written commitment to work with the Financial Action
Task Force (FATF) to implement the following corrective
measures: (1) adequately criminalizing money laundering and
terrorist financing; and (2) establishing and implementing
adequate procedures to identify and freeze terrorist assets. The
government was drafting amendments to the 2005-2006 laws on
money laundering and terrorist financing, in accordance with
FATF recommendations, at year’s end.
Regional and International Cooperation: In October, the Financial
Intelligence Unit (FIU) of Sri Lanka signed a Memorandum of
Understanding (MOU) with the FIU of Bangladesh to share
financial information to facilitate the investigation and prosecution
of persons suspected of money laundering and terrorist financing.
Sri Lanka has already signed MOUs with the Philippines, Nepal,
Cambodia, Malaysia, Afghanistan, South Korea, and Indonesia.
Countering Radicalization and Violent Extremism: In order to
address lingering resentment in areas that were formerly held by
LTTE combatants, the Sri Lankan government was working to
restore civil administration, resettle Internally Displaced Persons,
provide immediate infrastructure development, encourage private
sector participation, and promote the development of industries.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| SRI LANKA |
| KnowYourCountry |
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| Last Updated: 16 April 2012 |